American Express Mercedes-Benz Credit Card Review (discontinued for new applications)
Updated September 26, 2016.
The Facts
The Math
Even if you don't and never plan to have a Mercedes, this Mercedes Card which was introduced in August 2011 can be very valuable. For the same $95/year, it is far superior than Amex Green Card due to its 3-2-1 earning structure.
Amex Mercedes-Benz vs. Amex Premier Rewards Gold: The annual fees are considered the same if you can use the $100 airline credit on PR Gold. PR Gold returns 3x on airfare and 2x on gas & groceries, while the Mercedes Card returns 3x on gas and 2x on dining.
Amex Mercedes-Benz vs. Amex EveryDay Preferred: The annual fees on both cards are the same at $95. Again assuming you achieve 50% bonus, EDP returns 4.5x (with a $6K annual spending cap), 3x, and 1.5x on groceries, gas, and others, while Mercedes-Benz Card returns 3x, 2x, and 1x, on gas, dining, and others. Unless you spend a lot on dining and/or have Mercedes spending, Amex EDP will be a better card to have.
Amex Mercedes-Benz vs. Fidelity Amex: In order to beat the $95 annual fee and 2% cash back, assuming your annual spending is $C with $A going to gas and $B going to dining and you value one MR point at Y cents, you need
$A x 2 x Y% + $B x Y% + $C x Y% - $95 = $C x 2%
i.e. (2A+B)Y=(2-Y)C+9500. For example, if Y=1.6 and C=30K, you need to spend say 4K in A and $5.4K in B. Of course, if you value miles/points higher and/or your spending on bonus categories is larger, the task shall be easier.
However, if you use the Mercedes Card for bonus categories only, you need (2A+B)Y=9500 to offset the annual fee. Still assuming Y=1.6, you need to spend say $2K in A and $2K in B, which shouldn't be too hard. For this reason, many people may actually find the Mercedes Card a great supplement to PR Gold since all MR points will be pooled together.
Of course, current or future Mercedes vehicle owners may find this card even better for the 5x bonus points, $500 certificate toward purchase or lease, and $50 toward accessories.
The Conclusion
Even if you don't have or need a Mercedes, Amex Mercedes Credit Card can be of great value if you have big spending in gas and dining.
The Facts
- Annual Fee: $95
- Signup Bonus: 5,000 points
- Rewards: 5x Mercedes-Benz purchases, 3x U.S. gas stations, 2x U.S. restaurants, 1x everywhere else
- Best Use of Membership Rewards points: The Mercedes co-branded credit card actually earns Amex Membership Rewards (MR) points, just like Amex Green, Gold, and Platinum Cards. Normally, Amex Membership Rewards points can be redeemed for statement credit, merchandise gift cards, travel, shopping, etc., up to 1 cent per point. However, Amex Mercedes-Benz Card, along with some other products, is eligible for the transfer feature that allows points to be transferred to frequent flyer miles or frequent guest points. Please see our featured review on five major programs that have transfer features - SPG vs. MR. vs. UR vs. TY vs. CR.
- Mercedes-Benz Benefits: (1) Receive an annual $500 certificate for future purchase or lease of a new Mercedes-Benz vehicle once your annual spending exceeds $5,000. (2) Receive an annual $50 certificate toward Mercedes-Benz accessories after the 1st purchase and each anniversary.
- Other Benefits: (1) Amex Offers - you receive savings in form of statement credit or earn bonus MR points on select merchants when using your Amex card; you need to manually add an offer to your Amex card to be eligible for savings or bonus, and unlike other savings/bonus programs, you don't need to shop through a certain portal. (2) ShopRunner membership for free 2-day shipping with select merchants. (3) Entertainment Access (a.k.a. Membership Experiences) including American Express Presale and Premium Access (Dining Access).
The Math
Even if you don't and never plan to have a Mercedes, this Mercedes Card which was introduced in August 2011 can be very valuable. For the same $95/year, it is far superior than Amex Green Card due to its 3-2-1 earning structure.
Amex Mercedes-Benz vs. Amex Premier Rewards Gold: The annual fees are considered the same if you can use the $100 airline credit on PR Gold. PR Gold returns 3x on airfare and 2x on gas & groceries, while the Mercedes Card returns 3x on gas and 2x on dining.
Amex Mercedes-Benz vs. Amex EveryDay Preferred: The annual fees on both cards are the same at $95. Again assuming you achieve 50% bonus, EDP returns 4.5x (with a $6K annual spending cap), 3x, and 1.5x on groceries, gas, and others, while Mercedes-Benz Card returns 3x, 2x, and 1x, on gas, dining, and others. Unless you spend a lot on dining and/or have Mercedes spending, Amex EDP will be a better card to have.
Amex Mercedes-Benz vs. Fidelity Amex: In order to beat the $95 annual fee and 2% cash back, assuming your annual spending is $C with $A going to gas and $B going to dining and you value one MR point at Y cents, you need
$A x 2 x Y% + $B x Y% + $C x Y% - $95 = $C x 2%
i.e. (2A+B)Y=(2-Y)C+9500. For example, if Y=1.6 and C=30K, you need to spend say 4K in A and $5.4K in B. Of course, if you value miles/points higher and/or your spending on bonus categories is larger, the task shall be easier.
However, if you use the Mercedes Card for bonus categories only, you need (2A+B)Y=9500 to offset the annual fee. Still assuming Y=1.6, you need to spend say $2K in A and $2K in B, which shouldn't be too hard. For this reason, many people may actually find the Mercedes Card a great supplement to PR Gold since all MR points will be pooled together.
Of course, current or future Mercedes vehicle owners may find this card even better for the 5x bonus points, $500 certificate toward purchase or lease, and $50 toward accessories.
The Conclusion
Even if you don't have or need a Mercedes, Amex Mercedes Credit Card can be of great value if you have big spending in gas and dining.